3/24/2014 - Markets
PV to become competitive for Brazil's energy auctions
Potential investors in the Brazilian solar market claim that they would be able to submit PV project proposal in the frame of the country’s energy auctions at a maximum price of 200 BRL ($85.6) per MWh, thus making PV competitive with other renewable energy sources, according to Reuters that cites a statement from André Pepitone, the president of Brazil’s energy regulator Agência Nacional de Energia Elétrica (ANEEL). For comparison, the solar energy auction held by the state of Pernambuco in December 2013 ended with an average price of 228.6 BRL per MWh – the starting maximum price for the auction was 250 BRL per MWh. In Brazil’s national A-3 and A-5 energy auctions held in November and December, respectively, the starting maximum prices for the auctions were 126 BRL and 122 BRL per MWh for all types of projects, respectively. These rates were especially favorable for wind projects, which in the end dominated both auctions. Not a single PV project was selected in either auction. The main Brazilian electricity associations believe that a reasonable price cap for a solar auction would be between 190 and 200 BRL per MWh.
According to Reuters, Pepitone also said that solar investors would be able to install PV projects with a combined capacity of 1 GW per year and complete their projects within12 months after start construction.
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